Starbucks on Monday took the leap into the juice bar sector by opening up its first juice bar known as Evolution Fresh. The smoothies store opened in Bellevue, Washington where customers can now purchase smoothies, bottled fruit and vegetable juices.
The company serves various options such as “Spiced Carrot” which is made with carrots, blueberries, and cinnamon along with vegan and various other options.
Starbucks has not said how many locations it plans to open but with $50 billion at stake it’s likely the company will attempt to expand the chain nearly as quickly as it did the Starbucks brand. However as Reuters points out juice bars don’t tend to boast the same profit margins as Starbucks coffee shops which could irk investors.
This time around Starbucks chose to buy a brand rather than create a new product from line from scratch. Evolution Fresh, based in n San Bernardino, Calif., was purchased by the coffee chain last year for $30 million.
Evolution Fresh was launched by the founder of Naked Juice who’s own company found quick success in the United States as the fresh juices industry has witnessed a boon in recent years with many buyers turning away from soda and other drinks for a more healthy and balanced choice in drinks.
Starbucks CEO Howard Schultz says he would like to see an independent juice bar score sales of more than $1 million yearly however that expectation surpasses even industry leader Jamba Juice.
Do you think Evolution Fresh can capture a decent chunk of the already crowded fresh juice market?